Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Tower Semiconductor reported strong financial results for the second quarter of 2026, achieving record revenue of $460 million, an 11% increase quarter-over-quarter and 24% year-over-year growth.</li><li>The company posted a gross margin of 30%, operating margin of 20%, and net margin of 20%, all representing new company highs.</li><li>Net profit doubled compared to the prior year, reaching $91 million with earnings per share of $0.80.</li></ul>

Tower Semiconductor reported strong financial results for the second quarter of 2026, achieving record revenue of $460 million, an 11% increase quarter-over-quarter and 24% year-over-year growth.The company posted a gross margin of 30%, operating margin of 20%, and net margin of 20%, all representing new company highs.Net profit doubled compared to the prior year, reaching $91 million with earnings per share of $0.80.

Tower Semiconductor’s Silicon Photonics Boom: Can A $680 Million Run Rate Hit $1 Billion This Year?

Independent Fund Manager, Swaen Capital

Swaen Capital

Independent Fund Manager

Swaen Capital is a Singapore based licensed independent fund manager with an open architecture, a non bias financial platform creating access to the best custodians and investment managers. Our focus lies within the wealth management business, covering client relationships, financial planning, advisory, as well as discretionary portfolio management. We have developed strategic alliances with other leading independent firms to complement and extend our offerings to clients (global hedge fund research capability, alternative investment offerings, corporate finance, fund structuring & administration, etc). Our know-how, extensive global network and long standing presence in Asia allows us to provide a global footprint and at the same time enables us to capitalize on regional opportunities.

Thematic (Sector/Industry)

<ul>
<li>The copper wall is here. Above ~200Gbps per lane, copper can no longer carry signals more than a few metres without prohibitive power and signal-integrity penalties. The industry's answer is to move the optics off the faceplate and onto the chip package itself — Co Packaged Optics (CPO).</li>
<li>Adoption is switch-first. NVIDIA and Broadcom are shipping CPO switches in 2026 on external-laser designs; the XPU side and an in-package laser are deferred by packaging and reliability limits, not yet solved.</li>
<li>Money moves with the architecture. As the optical engine moves into the package, value migrates away from module assemblers toward the layers that fabricate the optical engine itself.</li>
</ul>


The copper wall is here. Above ~200Gbps per lane, copper can no longer carry signals more than a few metres without prohibitive power and signal-integrity penalties. The industry's answer is to move the optics off the faceplate and onto the chip package itself — Co Packaged Optics (CPO).
Adoption is switch-first. NVIDIA and Broadcom are shipping CPO switches in 2026 on external-laser designs; the XPU side and an in-package laser are deferred by packaging and reliability limits, not yet solved.
Money moves with the architecture. As the optical engine moves into the package, value migrates away from module assemblers toward the layers that fabricate the optical engine itself.


Co-Packaged Optics 101: The Future of High-Density AI Interconnects

<ul><li>Tower Semiconductor has become one of the semiconductor market’s most dramatic momentum stories after announcing a major expansion of its manufacturing operations in Japan.</li><li>The company plans to invest $3 billion to increase production capacity, supported by a $1 billion grant from the Japanese government.</li><li>The announcement sent its U.S.-listed shares up more than 18% in premarket trading, extending a rally that had already lifted the stock by over 95% since the beginning of the year.</li></ul>

Tower Semiconductor has become one of the semiconductor market’s most dramatic momentum stories after announcing a major expansion of its manufacturing operations in Japan.The company plans to invest $3 billion to increase production capacity, supported by a $1 billion grant from the Japanese government.The announcement sent its U.S.-listed shares up more than 18% in premarket trading, extending a rally that had already lifted the stock by over 95% since the beginning of the year.

Tower Semiconductor Stock Exploded—Has The Market Gone Too Far?

Founder, CEO, GSBR Research

Garvit Bhandari

Founder, CEO

Leading Provider of Equity and Investment Research

GSBR Research

We are an independent equity research provider focused on covering global markets. The aim of the research is to provide an unbiased view of the fundamentals of the company.

<ul>
<li>Tower's July 2026 METI-backed Japan expansion raises the 2028 model to $3.6B revenue and $1.2B net profit, from Track 1 capacity alone</li>
<li>$1.3B contracted 2027 SiPho deliveries, $290M customer prepayments, and ~$1B in Japanese government grants shift expansion risk off Tower's balance sheet</li>
<li>Based on the current market capitalization of approximately $28 billion, the shares trade at roughly 23x the company’s 2028 earnings target.</li>
</ul>


Tower's July 2026 METI-backed Japan expansion raises the 2028 model to $3.6B revenue and $1.2B net profit, from Track 1 capacity alone
$1.3B contracted 2027 SiPho deliveries, $290M customer prepayments, and ~$1B in Japanese government grants shift expansion risk off Tower's balance sheet
Based on the current market capitalization of approximately $28 billion, the shares trade at roughly 23x the company’s 2028 earnings target.


Tower Semiconductor (TSEM): Japan Expansion and Contracted Demand Support the Bull Case

<ul><li>Tower Semiconductor reported a solid first quarter of 2026 with revenue of $414 million, marking a 15% increase year-over-year, and a net profit of $65 million, up 62% from the same period in 2025.</li><li>The net margin improved to 16% from 11% a year earlier, underscoring better operational efficiency.</li><li>The company guided second-quarter 2026 revenue to approximately $455 million, representing a 22% year-over-year increase and a 10% quarter-over-quarter growth, forecasting continued sequential and annual growth.</li></ul>

Tower Semiconductor reported a solid first quarter of 2026 with revenue of $414 million, marking a 15% increase year-over-year, and a net profit of $65 million, up 62% from the same period in 2025.The net margin improved to 16% from 11% a year earlier, underscoring better operational efficiency.The company guided second-quarter 2026 revenue to approximately $455 million, representing a 22% year-over-year increase and a 10% quarter-over-quarter growth, forecasting continued sequential and annual growth.

Tower Semiconductor Is Not Just A Specialty Foundry Anymore — Here’s Why!

Israel

Tower Semiconductor Ltd. (TowerJazz) is an independent foundry providing semiconductor integrated circuits manufacturing & related design services. The Company manufactures wafers using its technologies & production capability and the proprietary designs of its customers. TowerJazz's integrated circuits are incorporated into a wide range of products in diverse markets.

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Tower Semiconductor (TSEM US)

Tower Semiconductor’s Silicon Photonics Boom: Can A $680 Million Run Rate Hit $1 Billion This Year?

Tower Semiconductor reported strong financial results for the second quarter of 2026, achieving record revenue of $460 million, an 11% increase...

Baptista Research

Co-Packaged Optics 101: The Future of High-Density AI Interconnects

The copper wall is here. Above ~200Gbps per lane, copper can no longer carry signals more than a few metres without prohibitive power and...

Swaen Capital

Tower Semiconductor Stock Exploded—Has The Market Gone Too Far?

Tower Semiconductor has become one of the semiconductor market’s most dramatic momentum stories after announcing a major expansion of its...

Baptista Research

Tower Semiconductor (TSEM): Japan Expansion and Contracted Demand Support the Bull Case

Tower's Japan expansion backed by METI boosts revenue and profit, with SiPho deliveries and government grants reducing risk and shares trading at...

GSBR Research

Tower Semiconductor Is Not Just A Specialty Foundry Anymore — Here’s Why!

Tower Semiconductor reported a solid first quarter of 2026 with revenue of $414 million, marking a 15% increase year-over-year, and a net profit...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tower Semiconductor’s Silicon Photonics Boom: Can A $680 Million Run Rate Hit $1 Billion This Year?

Tower Semiconductor reported strong financial results for the second quarter of 2026, achieving record revenue of $460 million, an 11% increase...

Baptista Research

Co-Packaged Optics 101: The Future of High-Density AI Interconnects

The copper wall is here. Above ~200Gbps per lane, copper can no longer carry signals more than a few metres without prohibitive power and...

Swaen Capital

Tower Semiconductor Stock Exploded—Has The Market Gone Too Far?

Tower Semiconductor has become one of the semiconductor market’s most dramatic momentum stories after announcing a major expansion of its...

Baptista Research

Tower Semiconductor (TSEM): Japan Expansion and Contracted Demand Support the Bull Case

​Tower's Japan expansion backed by METI boosts revenue and profit, with SiPho deliveries and government grants reducing risk and shares trading at...

GSBR Research

Tower Semiconductor Is Not Just A Specialty Foundry Anymore — Here’s Why!

Tower Semiconductor reported a solid first quarter of 2026 with revenue of $414 million, marking a 15% increase year-over-year, and a net profit...

Baptista Research

Tower's Japan expansion backed by METI boosts revenue and profit, with SiPho deliveries and government grants reducing risk and shares trading at...